Every cannabis business runs into its fair share of unexpected problems that require corrective action. In the early stages, it might be construction and licensing problems. Down the road, it might be METRC compliance and branding issues.
Knowing when to take corrective action can be challenging, and waiting too long can lead to escalated complications. It’s crucial that you pursue corrective action in your cannabis business as soon as you suspect that you have a problem.
So how exactly do you pinpoint and address the issues that require corrective action? Read on for everything you need to know about taking corrective action in your cannabis business.
Common Issues That Require Corrective Action
To mitigate your cannabis business’s need for corrective action, it helps to arm yourself with the knowledge of the most common issues that arise. When you know what problems to look out for, you can take preventative action to avoid them.
Here are four common issues that often require corrective action.
A license application can range from 200-300 pages in length to as many as 1,600 pages or more, depending on the level of competition in your state. Your application will require detailed plans, procedures, and policies. If your answers are too brief or simply don’t cover the requirements, your license will be rejected.
When your license application is approved, remember – your proposed plan is a definite promise. Not a loose agenda. Your state will expect you to follow the precise plans that you submitted. If change your plans, you’ll need to submit a new report to reflect those changes.
If your plans are not executed as promised, your business will need to take corrective action to get back on track and avoid further consequences.
To say the least, you put yourself at a huge disadvantage when you set out to complete the application on your own. For your greatest chance of success, consider hiring an architect, an accountant, a lawyer, and a consultant like HYC.
Construction & Building Design
Once your license has been approved and you’re ready to move forward with your plan, you will need a licensed architect and an engineer to satisfy state requirements. You will also need a plumber, an electrician, and an HVAC technician.
You’ll need to pass inspections along the way to ensure your design and build match your original licensing plan. Any inconsistencies will halt your progress until they are addressed.
Business owners often neglect to consider the various moving parts of a commercial construction project. Without a specific timeline, for example, an entire project can be pushed back for weeks or months.
By taking immediate corrective action for construction and building design, you can rectify a problem in just four to five months. Seeking corrective action later in the process, on the other hand, requires recalibrating, rescheduling, and getting everyone on the same page. This process can take up to an entire year.
There is an emotional layer to branding that may compel business owners to gamble a portion of their investments away. But if your branding is not aligned with your customer base, taking corrective action may, unfortunately, mean starting over.
It’s essential to appeal to the needs of your customer. Even more important than a cool logo is an atmosphere and brand image that fit the market and draws in your intended customer.
If you don’t feel like you’re equipped to move forward with your branding, take a step back and evaluate why you’re not ready. It will save you hundreds of dollars on rebranding in the future.
METRC is a tracking process that follows the life of a seed to its final purchase point. New entrepreneurs commonly face dilemmas with METRC because the system is perceived to be straightforward. However, without proper education on how it works, businesses can easily fall out of compliance with local and state regulations.
When the appropriate methods are not followed, corrective action for METRC compliance can involve becoming compliant, retraining employees, and creating new oversight.
When It’s Time for Corrective Action
Perhaps you’re concerned about exposing your data to a third party. Or maybe you fear repercussions that could result in trouble for you. Whatever the reason, putting off addressing your business’s problems will only lead to worse problems in the future that may be more costly to solve.
HYC is not here to punish your business for not being compliant but rather to support you in becoming compliant so you aren’t fined or shut down. If you’re confused or unsure of your next steps, it’s time to take a step back and look at the big picture.
What Corrective Action Looks Like
There’s no single way to take corrective action. Depending on the problem, budget, and available resources, the process will look different for every cannabis business. Regardless of the problem, the process includes evaluating a problem and taking the steps to resolve it.
In Oklahoma, for example, all cannabis dispensaries will soon be required to use the METRC tracking system. As a result, many businesses are scrambling to take corrective action to learn and implement the system. That’s where we come in.
At HYC, our job is to support cannabis businesses in handling these common errors. Our team has the expertise to make sure that your business is following your licensing application and meeting all state and local regulations.
To prevent painful and expensive errors and take corrective action for your cannabis business, schedule a consultation today.